The Dow continued its “New Year rally” on Tuesday with gains for the 5th consecutive session and stabilized comfortably above 36,000 points. On the contrary, the S&P 500 moved with small fluctuations and alternations of signs, losing in the end its 70th record for 2021, but it keeps in touch with its historical highs. The Nasdaq ended the session with small losses.
Investors seem to be looking forward to 2022 with optimism and are not particularly intimidated by the new pandemic wave that continues to spread around the world, as they still believe that the impact of the Omicron mutation will not derail economies. Nevertheless, the expectations for another strong rise of the shares seem doubtful after the excessive profits of 2021.
The market estimates that the impact of the new mutation will be “quite mild” despite the fact that the new strain is highly contagious. It also predicts that it is unlikely to lead to a “lockdown” in the US, said Scott Wren, an analyst at the Wells Fargo Investment Institute.
“It seems that last week’s reports confirming that the new mutation is not as deadly as previous strains of the virus are maintaining a positive pace in the markets this week,” said Charalambos Pissouros, head of research at JFD Group.
It is noted that the American CDC (Centers for Infection Control and Prevention) recommended reducing the isolation time to 5 days for the asymptomatic carriers of the coronavirus and at the same time it was suggested another 5 days using a mask when they come in contact with third parties.
At the macro of the day, US house prices continued to rise in OctoberHowever, the growth rate slowed for the second consecutive month, according to data from the S&P CoreLogic Case-Shiller, intensifying the feeling that the housing market is “cooling” after more than a year of frantic sales. In particular, the national index recorded an increase of 19.1% on an annual basis in October, following an annual increase of 19.7% in September.
In the meantime, his performance 10-year US government bond add 0.5 m.p. at 1.48%, while the dollar gained 0.1% to 96.14 points.
Indicators – Statistics
On the dashboard, the industrial Dow added 0.26% to 36,398.21 points. The wider S&P 500, while recording a new all-time high with gains of 0.13%, it finally fell by 0.1% to 4,786.36 points. The technological Nasdaq slipped 0.56% to 15,781.72 points.
From 30 shares Dow Jones, 22 closed with a positive sign and 8 with a negative. Walt Disney (+ 1.54%), Boeing (+ 1.48%) and Walmart (+ 1.45%) led the gains, while Salesforce (-1.08%) and Nike (- 0.69%).
The focus was on Digital Turbine, which lost 1.73%, although the media and mobile communications company announced a multi-year partnership with Google.
Kiniksa Pharmaceuticals reported that a Phase 3 trial of mavrilimumab for the treatment of covid-19-associated acute respiratory syndrome (ARDS) failed to achieve the desired level of efficacy. The share fell today by 2.88%.
In corporate news Apple announced yesterday that it has closed all 12 stores in New York for markets as incidence of coronavirus Omicron variant infection increased nationally. The company’s customers will be able to order products online and pick them up from stores, according to an Apple spokesman. Its share closed with losses of 0.58%.
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I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
